New Delhi: The Government has notified the National Bank for Financing Infrastructure and Development (NaBFID) as a public financial institution under the Companies Act.
This will help the government fortify the nation's infrastructure finance structures.
In a notification issued on September 10, the Corporate Affairs Ministry said that in exercise of the powers, Section 2 of the Companies Act, 2013, the Central Government, in consultation with the Reserve Bank of India, hereby notifies National Bank for Financing Infrastructure and Development as a "public financial institution".
The move will enhance the bank's capacity to finance large-scale infrastructure projects, thereby bolstering the country's infrastructure development.
NaBFID, a specialised Development Finance Institution (DFI), was set up in 2021, by an Act (The National Bank for Financing Infrastructure and Development Act, 2021).
The Bank was set up with the essential objectives of addressing the gaps in long-term non-recourse finance for infrastructure development, strengthening the development of bonds and derivatives markets in India, and sustainably boosting the country’s economy.
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